In less than two weeks, the administration reversed course and is now asking an Orleans Parish Judge to reconsider that order to pay.
It’s the second time the administration changed directions after Montaño made public comments affirming the city will provide money to the district.
The first time, Montaño negotiated and helped publicly announce a deal last fall to provide OPSB $90 million over the course of a decade.
Mayor LaToya Cantrell backed out of the deal by early 2025. Her administration argued Montaño did not have the authority to make deal, the city could not afford it, and no final deal was ever finalized.
In response, OPSB asked Orleans Parish Judge Nicole Sheppard to hold Mayor LaToya Cantrell’s administration to the deal it backed out of and for the city to pay the $10 million because it was already budgeted.
Sheppard issued a split-decision. She agreed with the city that there was no deal, but ordered the $10 million to be paid because it was budgeted.
In the aftermath of Sheppard’s decision, Montaño said the city planned to pay the $10 million.
“Unless there’s something in law, that has not briefed me, the plan and the decision is to agree and pay that payment,” he said.
Fox 8 asked Montaño at that time if the OPSB could trust his word given the previous deal.
“Trust is a very pointed word. I would hope and anticipate that the $10 million that we’re representing moving forward on, to all information, as of whatever time it is right now, we’re moving forward and preparing the payment to go toward them,” he said.
On March 28th, attorneys for the city filed a motion for a new trial or reconsideration, arguing Judge Nicole Sheppard’s order to pay the district $10 million violates the Louisiana Constitution.
Montaño and the Cantrell’s communications team did not respond to a request for comment.
OPSB Attorney Bill Aaron called the filing a “delay tactic” ahead of a June trial over the city’s diversion of OPSB tax funds.
New Orleans City Council Budget Chair Joe Giarrusso has been a critic of the administration’s handling of the original deal.
“The CAO said we’re going to pay this. Well, the judge’s ruled that you got to pay it. Now a court may overrule that later on and take it back. But for right now, let’s pay the money to the kids, if something has to change in the future, we’ll deal with that then,” he said.
Aaron said a hearing on the issue is scheduled for April 10.
